The Automobile Association, a private-equity owned car insurance and recovery firm, is “desperate” to keep its defined benefit pension scheme open to new joiners – one of a handful of UK companies to stick by the expensive option, writes Mark Cobley at Financial News.

The company is negotiating with unions over the future of the retirement plan, said a spokeswoman. In a recent letter to staff, chief executive Andrew Strong wrote: “We do not want to move from a defined benefit arrangement, which we see as a valuable benefit for employees.”

The commitment made by the AA, which is owned by the buyout firms Permira, Charterhouse Capital Partners and CVC Capital Partners, is unusual. Many UK firms cut back or withdrew these benefits during 2009, including Barclays, BP, Fujitsu, Michelin, Morrisons and Tate & Lyle.

However, the AA wants to alter its scheme to make it more affordable. It already pays pensions based on members’ average earnings throughout their careers, rather than their final salary.